Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ayayai Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: AYAYAT INC. Comparative Statement of Financial

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Ayayai Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: AYAYAT INC. Comparative Statement of Financial Position December 31 2020 2019 Cash $ 52,805 $ 25.160 Accounts receivable 58,010 51.080 Inventory 40,030 60.150 Prepaid rent 5.320 4.180 Equipment 156.400 130.200 Accumulated depreciation-equipment ( 35.320D 25.180 Goodwill 20.000 52.000 Goodwill 20,000 52,000 Total assets $ 297,245 $ 297,590 Accounts payable $ 46,400 $ 40,200 Income tax payable 4,030 6,150 Salaries and wages payable 8,160 4,160 Short-term loans payable 8,010 10,080 Long-term loans payable 60,000 71,000 Common shares 130,000 130,000 Retained earnings 40.645 36,000 Total liabilities and shareholders' equity $ 297.245 297,590 Question 3 of 3 26. Income Statement Year Ending December 31, 2020 Sales revenue $ 340,280 Cost of goods sold 165.000 Gross margin 175,280 Operating expenses 120,000 Operating income 155.280 Interest expense $ 12,400 Impairment loss-goodwill 32.000 Gain on disposal of equipment 2.900 41.500 Income before income tax 13.780 Income tax expense 4.135 Net income $ 9,645 26.67 / 40 TIL Income tax expense 4,135 Net income $9.645 Additional information: 1. Dividends on common shares in the amount of $5,000 were declared and paid during 2020. Dividends paid are treated as finar 2. Depreciation expense is included in operating expenses, as is salaries and wages expense of $ 73,000. 3. Equipment with a cost of $ 30,000 that was 70% depreciated was sold during 2020. a Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - signeg.-15,000 or in parenthesis eg. (15,000).) Ayayai Inc. Statement of Cash Flows (Indirect Method)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

11th Canadian edition Volume 2

1119048540, 978-1119048541

More Books

Students also viewed these Accounting questions

Question

=+ Where, how, why, and when are the products to be bought abroad?

Answered: 1 week ago